During the week ending June 9, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have seen slight declines, though transaction activity in the domestic market has been at low-to-medium levels.
Offer prices of ex-China PPGI have been heard between $730/mt, edging up by $30/mt compared to last week.
Average PPGI prices in the local Chinese market are presented in the following table.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,707 |
-7 |
802 |
-1 |
|
0.426 x 1,000 |
CGCC |
5,767 |
-7 |
811 |
-1 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, average PPGI prices in the Chinese domestic market have indicated slight declines amid increasing production capacity utilization rates and sluggish demand, though rising HRC futures prices have bolstered market sentiment. Meanwhile, iron ore prices have also seen rises, providing certain support for PPGI prices from the cost side. However, demand for PPGI is unlikely to see a significant improvement, which may negatively affect its prices. It is thought that PPGI prices in the Chinese domestic market may edge up slightly in the coming week.
As of June 9, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,823/mt ($538.5/mt), up RMB 101/mt ($14.2/mt) or 2.7 percent from RMB 3,722/mt on June 2.
$1 = RMB 7.1115